Despite Billions In Federal Funding, Intel Layoffs In Arizona Will Cost Taxpayers Even More

Despite Billions In Federal Funding, Intel Layoffs In Arizona Will Cost Taxpayers Even More

By Matthew Holloway |

While the Biden-Harris administration is still boasting of the success of the CHIPS and Science Act, the Intel Corp. announced it will cut 15,000 jobs across the nation, “as part of the broad-based cost savings plan.” New reports show that almost four hundred of those job cuts will be at the company’s Ocotillo campus in Chandler.

As reported by Phoenix Business Journal, the series of layoff has come despite an upcoming injection of billions of taxpayer dollars via the CHIPS Act aimed at expanding the Chandler facility. Intel as a whole has approximately 12,000 employees in Arizona.

In a written statement Intel explained, “As part of the broad-based cost savings plan we announced in August, we are making the hard but necessary decisions to reduce the size of our workforce. These are the most difficult decisions we ever make, and we are treating people with care and respect. These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth.”

According to The Center Square, the office of Arizona’s Democrat Governor Katie Hobbs was quick to announce the mobilization of state taxpayer-funded resources being made available to the laid off Intel workers.

Spokesman Christian Slater told the outlet, “The Governor’s Office is already mobilizing rapid response resources at DES to connect affected workers with the resources they need to receive support and find new employment. Ensuring that every Arizonan has access to good-paying jobs is a top priority for Governor Hobbs, and she will continue bringing together workers and businesses to navigate challenges, create jobs and build an economy that helps every Arizonan thrive.”

In an August statement, Hobbs stressed Intel’s expansion in the state after the non-specific “cost savings plan,” was announced saying, “They’re expanding here. We’re thrilled to have their expansion here. We’re working with them on workforce initiatives to grow the skilled pipeline of workers that they need. We’re continuing to do that.”

Any direct mention of the billions of dollars earmarked for Intel via the CHIPS Act was decidedly absent from the Hobbs administration’s statement. However, a statement from the office of Senator Mark Kelly (D-AZ) doubled down on the multi-billion-dollar giveaway, which failed to prevent the layoffs.

Kelly’s office wrote that the round of layoffs, “further underscores the importance of the CHIPS Act.” His office added, “American companies like Intel are facing unprecedented competition from China, but thanks to the CHIPS Act, we’re making sure Intel, and other companies can manufacture the most advanced chips right here in America—creating thousands of construction jobs, and generating even more good-paying, permanent technician jobs in Chandler and across the state that don’t require a four-year degree.”

As reported by the New York Post in August, despite the passage of the CHIPS Act, Intel suffered a staggering $1.6 billion in losses, with CEO Pat Gelsinger saying, “Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” per the memo published to the firm’s website. “Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.”

When the initial announcement broke in August, Republican Senate candidate Kari Lake placed the blame for Intel’s problems squarely on the Biden-Harris administration in a post to X, writing, “For over 45 years, Arizona has been Intel’s U.S. manufacturing powerhouse. In the last job reports, Intel Shares plunged 20%, forcing them to lay off more than 15% of their employees. These are the devastating consequences #Bidenomics is having on our state. In the US Senate, I will work with President Trump to cut the deficit, turbocharge the economy, & bring back good jobs so that all companies both big & small can thrive in State 48.”

Intel’s CEO also noted that staff drawdowns through voluntary exits in September via “early retirement and separation offerings,” already had the company almost halfway to its 15k downsizing goal. But Gelsinger warned at the time, “We still have difficult decisions to make and will notify impacted employees in the middle of October.”

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Policy Group Demands Investigation Into Secretary Of State’s Use Of Taxpayer Funds

Policy Group Demands Investigation Into Secretary Of State’s Use Of Taxpayer Funds

By Staff Reporter |

The Arizona Free Enterprise Club (AFEC) is demanding an investigation into an alleged misuse of taxpayer funds by Secretary of State Adrian Fontes. 

AFEC published a press release on Tuesday accusing Fontes of misusing taxpayer funds by filing a “politically motivated” brief in the ongoing Arizona Supreme Court case, Smith v. Fontes. The organization also requested that Fontes recuse himself from all ballot tabulation procedures concerning the other initiatives. 

“By filing his brief at the Arizona Supreme Court, Fontes unequivocally signaled his position that 40,000 duplicate signatures should be ignored and counted in favor of passing Proposition 140,” said AFEC in its press release. “In short, to Fontes, the ends justify the means to ensure that Arizona’s elections system can be operated like California’s radical system.”

AFEC and other critics compare the components within Proposition 140 to current election procedures exercised by California. 

Proposition 140 seeks to remove the partisan split in primary voting — instead implementing open, or “jungle,” primaries — and determine winners using ranked-choice voting. Ranked-choice voting allows voters to rank their preferred candidates each election until one candidate accrues over 50 percent of the vote. 

That claim of political motivation stems from Fontes’ role as a “team member” for the nonprofit organization (Save Democracy) supporting the political action committee (Make Elections Fair Arizona) pushing Proposition 140. Those two entities are also united by the involvement of Sarah Smallhouse as their president and treasurer, respectively: a longtime Democrat donor from Tucson who served as leadership for a University of Arizona board and the Southern Arizona Leadership Council. 

Fontes’ brief petitioned the court to count any votes cast for Proposition 140, even if the ongoing review of the ballot-qualifying signatures determined that there weren’t enough signatures gathered. Fontes argued that the proposition should be considered valid since the ballots were already being printed with the contested proposition on them.

“Once the ballots have gone to print, it is in the hands of Arizona’s voters,” said Fontes. “The person contesting an issue (or candidate) can make a case to the voters, but the Courts cannot usurp the voters’ decision once it goes to them.” 

AFEC sued to stop Proposition 140 earlier this summer after reportedly discovering that over half of the gathered signatures were in violation of state law — around 40,000 duplicates. Should all those alleged duplicate signatures be removed, the proposition would lack the number of signatures required to qualify for the ballot. 

AFEC President Scot Mussi said in a statement that Fontes’ brief amounted to the secretary of state taking a side in a ballot measure rather than maintaining an impartial role in the elections process. 

“Far from acting as a fair and impartial elections chief, Fontes has officially taken a side in a controversial measure that would be potentially on the ballot, showing Arizonans that he is using taxpayer dollars to make the case for a California-style amendment that would fundamentally transform the way we vote and select our candidates for public office,” said Mussi. “This is not saving democracy; this is trampling the will of the people and the laws that govern how elections should be executed.”

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Reforming The Arizona Commerce Authority: Lawmakers Should Resolve Constitutionality Problems First

Reforming The Arizona Commerce Authority: Lawmakers Should Resolve Constitutionality Problems First

By the Arizona Free Enterprise Club |

There are plenty of problems with the Arizona Commerce Authority. Since its inception in 2011, criticisms were raised concerning its freewheeling powers to dole out taxpayer money with practically no legislative oversight and broad exemptions from important guardrails such as the prohibition of using outside counsel (rather than the Attorney General’s office.) These issues have resurfaced over the years in critical Auditor General reports that have highlighted the insufficient reporting and record keeping for the administration of grants and awards provided by the agency to private businesses. This led to a mere 2-year extension of the agency in 2016, and a controversial reauthorization in 2018 when Republicans and Democrats alike banged the table for reforms. And most recently, the agency has come under fire by the Attorney General herself, for unconstitutional gifts in the way of wining and dining and Super Bowl tickets for CEOs.

Despite consistent criticism across the aisle and over the years, the ACA has evaded any real substantial reforms. That could very well change this year.

There now seems to be bipartisan interest in reining in an unaccountable agency with a $226M budget and a multi-million-dollar slush fund…

>>> CONTINUE READING >>> 

Reforming The Arizona Commerce Authority: Lawmakers Should Resolve Constitutionality Problems First

A Complicated History, An Uncertain Future: The Arizona Commerce Authority, Part I

By the Arizona Free Enterprise Club |

A contentious fight is brewing in the Arizona legislature, the possible reauthorization of the Arizona Commerce Authority (ACA). Governor Hobbs has made the reauthorization a top priority of her administration this session, mentioning it in her State of the State address. But the debate has an ironic element considering the history of its inception.

In 2011, the state was crawling out of a crippling recession, having lost literally hundreds of thousands of jobs and even selling off the state Capitol buildings to dig out of a deficit. The legislature, in collaboration with the Brewer Administration, introduced an omnibus bill sold as a “jobs package” which refashioned the bureaucratic Department of Commerce into the Arizona Commerce Authority, and incorporated both new targeted tax credit programs and incentives, as well as phased in corporate income and commercial property tax cuts.

Democrats a Decade Ago Opposed the ACA

The bill at the time was uniformly opposed by Democrats, including then Representative Katie Hobbs. Republicans mostly coalesced around the bill, with a handful of key conservatives voting in opposition of the legislation, largely in protest of the corporate welfare and multi-million-dollar “deal closing” fund with no legislative oversight. For those unfamiliar with the deal closing fund, it is a large pot of money appropriated to the Director of the Commerce Authority to throw at corporations to convince them to relocate to Arizona.

After the ACA was passed and signed into law, it would seem that only a few conservative voices and the Club itself would prove prophetic at the lack of oversight and inevitable gift clause violations, which is a constitutional protection from the government subsidizing private industry…

>>> CONTINUE READING >>> 

The Biden Administration’s Policies Are A Real Threat To Military Readiness

The Biden Administration’s Policies Are A Real Threat To Military Readiness

By Curtiss Leroy |

The U.S. military is facing a dangerous recruitment crisis. It seems to me, the main contributing factor to this crisis has been the Left’s insistence on infusing politics into our military. Under President Biden’s leadership, the Pentagon has been more interested in fighting the culture war at home than equipping our service men and women in their mission of deterring war and protecting our nation.

Earlier this year, President Biden’s Secretary of Defense Lloyd Austin issued a memo to use taxpayer funds for paid time off, lodging, and travel expenses for military service members and their families to receive elective abortions. A clear example of the Left’s push to prioritize a political agenda over longstanding federal policy, this memo was issued without necessary congressional approvals and in spite of the Hyde amendment, a decades-old federal law prohibiting federal funding for abortion that even President Biden himself supported during his tenure in the U.S. Senate. The simple fact is that the Defense Department has no authority to use our taxpayer dollars to facilitate abortion services—in fact, existing federal law makes doing so illegal.

In response, Senator Tommy Tuberville of Alabama has placed holds on the confirmation of certain military promotions to both demand Secretary Austin rescind the policy and also bring attention to the wider issue of the politicization of our military. Rather than addressing these clear problems and violations of federal law, Arizona’s own Senators have continued to play politics, repeat Democrat talking points, or avoid the issue altogether.

It is the policies of the Biden administration that are the real threat to military readiness and undercutting our national defense capabilities, and that is what Senator Tuberville’s holds are rightly pointing out.

As a former officer in the Army, I can tell you Arizona’s veterans and active-duty service members understand firsthand that politicizing the military is a problem—not a solution. Yet, our U.S. Senators in Arizona have both apparently missed that message. 

In July, Senator Mark Kelly claimed blocking of certain military promotions “is doing real damage to our national security right now” and that it will “have cascading effects for years.” But Senator Kelly is fear mongering, plain and simple.

Similarly, Senator Kyrsten Sinema has indicated that she wants to find a “middle ground” between Senator Tuberville and President Biden.

When the military prioritizes social justice instead of operational readiness, uses drag queens as recruiting ambassadors, and spends 6 million man-hours pushing DEI and CRT, it’s no wonder confidence in our military has already dropped by double-digits since Joe Biden took office. Common sense would tell you that is no way to foster recruitment.

We can continue down President Biden’s destructive path of turning our military into a social experiment or we can choose a path that helps our military get back to fulfilling its mission of keeping our country safe.

I stand with Senator Tommy Tuberville.

Curtiss Leroy is a resident of Tucson, AZ, and a Heritage Action Sentinel. He is a former officer in the U.S. Army, serving in Alaska and Vietnam.